Port of Long Beach growth expected

LONG BEACH - Top supply-chain experts said Wednesday they are optimistic they can handle what looks to be an improved peak season for shipping at the Port of Long Beach.

Several of the industry's leaders in cargo movement spoke at The Port of Long Beach's "Pulse of the Ports: Peak Season Forecast," its annual industry forecast event attended by roughly 400 people at the Hyatt Regency Hotel downtown.

The event, which began in 2005, brings together those involved in all points of the supply chain.

"Forecasting is not an exact science, but piecing together projections from these different vantage points is what allows us to see the big picture and plan for the future," said Susan E. Anderson Wise, head of the Long Beach Harbor Commission.

Speakers such as Daniel R. Wall, senior vice president of Ocean & Cargo Management Services, Expeditors, and Erxin Yao, president of OOCL (USA) Inc. discussed their customers' take on business and projects currently under way to manage future activity.

Wall, whose company's business is 30 percent retail, said his customers are optimistic, adding that 55 percent of volume will peak in September-October.

"We're looking at a traditional peak this year, which is something we haven't seen in a long time," he said.

He also said that 95 percent of his customers say volumes in the West Coast ports will either stay the same or increase. The reason for the possible increase? Better sales from consumers coming back to the job market and looser credit to open more stores.

Labor disputes on the East Coast may also mean more cargo shipments to the West Coast.

Yao, president of OOCL, whose company recently agreed to a 40-year lease with the Port of Long Beach in the future Middle Harbor, spoke of the "mega trend" of larger carriers.

About half of the ships are now able to carry 5,000 container units (or 20-foot equivalent units, TEUs) and 10 percent of the ships are more than 10,000 TEUs, Yao said.

"But if you look at our order book, almost half of the ships being built will be 10,000 TEUs or more," he said. "And that will be the trend of the future."

Christopher Lytle, executive director of the Port of Long Beach, spoke about the buzz surrounding the MSC Fabiola, the 12,500 TEU vessel that arrived in Long Beach a few weeks ago.

"That was a significant event," Lytle said. "The question of future competitiveness comes down to which ports could handle the biggest ships the most effective way. And with the Fabiola, we proved that Long Beach is ready.

"We're well positioned to bring ... more trade, more business, more jobs and more revenue to the port. With the help of many stakeholders, we're moving quickly to do just that."

Terminals at both the Ports of Long Beach and Los Angeles are preparing for possible peak season surge activity, said Bruce Wargo, secretary of the West Coast Marine Terminal Operators Agreement, which represents the 13 terminal operators in Southern California.

Some are deploying larger cranes in anticipation of larger vessels and offering an additional 55 night and weekend gate operations throughout the week in addition to normal schedules.

In past peak seasons, terminals added flex hours, and evening and morning shifts to get a head start, hired extra clerks for noon hour relief, he said.